Section EX 58 — Income Tax Act 2007: Additional FIF income or loss if CFC owns FIF

EX 58 Additional FIF income or loss if CFC owns FIF Application of this section (1) This section applies when— (a) a person has an income interest of 10% or more in a CFC for an accounting period under sections EX 14 to EX 17 ; and (b) because section EX 21(33) applies, FIF income and FIF loss is not taken into account in calculating the net attributable CFC income or loss of the CFC for the period for the person. Calculation of FIF income or loss (2) The person instead has FIF income or loss, for the income year in which the period ends, calculated using the formula— income interest × CFC’s FIF income or loss. Definition of items in formula (3) In the formula,— (a) income interest is the person’s income interest in the CFC for the period under sections EX 8 to EX 13 : (b) CFC’s FIF income or loss is the CFC’s FIF income or loss for the period calculated under subsections (4) and (5). Application of FIF rules to choice of method (4) The person must— (a) choose, under sections EX 44 to EX 48 , the calculation method for calculating the CFC’s FIF income or loss; and (b) otherwise apply the calculation rules in sections EX 44 to EX 61 as if the person directly held the attributing interest; and (c) apply the FIF loss ring-fencing rules in section DN 8 (Ring-fencing cap on deduction: attributable FIF income method) as if the person directly held the attributing interest. Exceptions (5) Despite subsection (4), the CFC's FIF income or loss does not include an amount actuarially determined to be attributable to policyholders in the CFC or another company as a result of applying section EX 21(25) and (26) to the CFC. Non-attributing Australian CFCs (6) This section applies whether or not the CFC is a non-attributing Australian CFC under section EX 22 for the period. Exclusion for insurance CFC meeting requirements of determination (7) The CFC's FIF income or loss does not include income from an income interest of less than 10% in a FIF if the CFC meets the requirements of a determination made by the Commissioner under section 91AAQ of the Tax Administration Act 1994. Defined in this Act: accounting period , amount , attributing interest , calculation method , CFC , company , FIF , FIF income , FIF loss , FIF rules , grey list , income interest , income year , loss , Compare: 2004 No 35 s EX 46 Section EX 58(1)(a): amended (with effect on 1 April 2008), on 6 October 2009, by section 180(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34). Section EX 58(1)(b): amended (with effect on 1 July 2009 and applying for income years beginning on or after that date), on 7 May 2012, by section 39(1) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34). Section EX 58(4)(c): amended (with effect on 1 July 2011 and applying for income years beginning on or after that date), on 7 May 2012, by section 39(2) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34). Section EX 58(5) heading: replaced (with effect on 1 July 2011 and applying for income years beginning on or after that date), on 7 May 2012, by section 39(3) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34). Section EX 58(5): replaced (with effect on 1 July 2011 and applying for income years beginning on or after that date), on 2 November 2012, by section 49(1) of the Taxation (Annual Rates, Returns Filing, and Remedial Matters) Act 2012 (2012 No 88). Section EX 58(6) heading: substituted (with effect on 30 June 2009), on 6 October 2009, by section 180(2) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34). Section EX 58(6): substituted (with effect on 30 June 2009), on 6 October 2009, by section 180(2) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34). Section EX 58(7) heading: added (with effect on 30 June 2009), on 29 August 2011 (applying for income years beginning on or after 1 July 2009), by section 42(1) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63). Section EX 58(7): added (with effect on 30 June 2009), on 29 August 2011 (applying for income years beginning on or after 1 July 2009), by section 42(1) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63). Section EX 58 list of defined terms branch equivalent income : repealed (with effect on 1 July 2009), on 7 May 2012, by section 39(4) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34).